Advantages of a GUA
Economic Advantage
The GUA provides a cooperative vehicle to acquire both small and large, private utilities, and offers the economic “bargaining power” and clout of a large-scale purchaser.
The GUA provides a public ownership alternative in the event a local government desires to transfer ownership of its existing utility facilities for any reason including consolidation or rate stabilization or as a means to raise funds for required capital improvements.
The GUA concept establishes a local system acquisition price structure for a private utility at the outset, thus avoiding unexpected future price increases when the local government’s acquisition decision is advantageous.
The cooperative GUA acquisition strategy does not encumber the financial resources of local government.
Unless and until any option to acquire is exercised, the assets and debt associated with the utility remain solely the responsibility of the GUA, not local government.
Future system improvements can be financed on a tax-exempt basis, thus minimizing the impact upon system users.
As an independent special purpose local government, the GUA can be vested with the power to impose special assessments by its charter, thus eliminating the financial restraint that plagues privately operated systems.
The GUA maintains and capitalizes upon economies of scale resulting from centralized management, operations, and planning.
Legal Advantages
The GUA concept eliminates the constant threat of litigation between private utility operators and the local government.
A shared legal agenda by all government members of the GUA diminishes costly redundancy in litigation and counsel.
Elimination of Florida Public Service Commission regulation substantially reduces the expensive requirement of legal counsel and other consultants for regulatory proceedings.
Management Advantages
Reliability, efficiency and responsiveness in accounting, billing and customer service are promoted by centralized GUA management.
Efficient, centralized construction management and planning offers broad-based water and wastewater expertise in required renovation, expansion and new construction projects.
Centralized GUA management reduces confusion and a costly “learning curve” by using professional private management and operations contractors.
Utility-related labor issues and personnel costs for local governments are eliminated because GUA supplies all personnel through contract with expert private providers.